Stocks rally after flailing overnight in wake of Trump victory

CHICAGO, IL - AUGUST 24: A trader monitors offers in the Standard & Poor's 500 stock index options pit at the Chicago Board Options Exchange (CBOE) on August 24, 2015 in Chicago, Illinois. Uncertainty among traders after big losses in the Asian markets caused a sharp drop in the S&P at the open. (Photo by Scott Olson/Getty Images)
Caption
CHICAGO, IL - AUGUST 24: A trader monitors offers in the Standard & Poor's 500 stock index options pit at the Chicago Board Options Exchange (CBOE) on August 24, 2015 in Chicago, Illinois. Uncertainty among traders after big losses in the Asian markets caused a sharp drop in the S&P at the open. (Photo by Scott Olson/Getty Images)

Credit: Scott Olson

Credit: Scott Olson

U.S. stock indexes surged on Wednesday after flailing overnight at news that Republican Donald Trump had claimed victory over his rival, Democrat Hillary Clinton, in the race for the White House.

The solid gains marked a reversal from earlier in the day, when global stock markets were roiled after it became clear that Trump had sealed the win.

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The Dow Jones industrial average was up 171 points, or 0.9 percent, as of 1:05 p.m. ET. The Standard & Poor's 500 index gained 17 points, or 0.8 percent. The Nasdaq composite index rose 38 points, or 0.7 percent.

In the wake of Trump's unexpected victory, financial markets opened to mixed trading on Wednesday morning.

Just after 9:30 a.m., the Dow Jones industrial average was down by 30 points, USA Today reported, far less than the 800 point plunge reported as investors contemplated the effect of a possible Trump administration overnight.

"The broad Standard & Poor's 500 stock index, which was down 5 percent overnight and hit a trading halt designed to limit losses, also so trimmed its steep declines and was down 0.3 percent," according to USA Today.

Global markets descended into chaos as returns started trickling in Tuesday night. Most of the losses had been pared down by Wednesday morning.

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A Clinton victory was perceived as being better for financial markets, Business Insider reported, because investors knew of her political history and because of the sense of continuity she was expected to provide.

"Markets generally don't like one party to have complete control," Michael Antonelli, an institutional equity sales trader and managing director at Robert W. Baird & Co. in Milwaukee, told Bloomberg Markets. "Gridlock is typically what the market likes, but the Republicans have been a market-friendly party. I think part of the reason the market rallied is because it looks like they're going to take all three. But Trump is this big question mark."

Meanwhile, yields on Treasury bonds reached their highest levels in months, Fortune reported, "in anticipation of a fiscal stimulus that will drive future interest rates higher."

The Associated Press contributed to this report.